J. D. Brian Ltd & Ors -v- Companies Acts [2011] IEHC 283 (11 July 2011)

J. D. Brian Ltd & Ors -v- Companies Acts [2011] IEHC 283 (11 July 2011)

On proper construction of the Debenture, service of a notice under clause 10 does not restrict the company's ability to deal with assets subject to the floating charge; therefore, the notice does not convert the floating charge into a fixed charge.

Citation
[2011] IEHC 283
Parties
Company: J. D. Brian Limited (In Liquidation); Company: J. D. Brian Motors Limited (In Liquidation); Company: East Coast Car Parts Limited (In Liquidation); Creditor: Governor and Company of the Bank of Ireland; Creditor: Revenue Commissioners
Jurisdiction
Ireland
Judgment Date
11 July 2011
Procedural Posture
Company Law Application / Supplementary High Court Judgment Following Initial Judgment and Prior to Supreme Court Appeal
Outcome
Application refused; declaration that service of notice under clause 10 does not convert floating charge into fixed charge.
Legal Topics
Floating Charges, Fixed Charges, Crystallisation of Security, Debenture Construction, Priority of Creditors
Insolvency Company Law Banking and Finance Floating Charges Fixed Charges Crystallisation of Security Debenture Construction Priority of Creditors

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 9 Party arguments 2
Sign in to unlock

Parties

J. D. Brian Limited (In Liquidation)

Company

J. D. Brian Motors Limited (In Liquidation)

Company

East Coast Car Parts Limited (In Liquidation)

Company

Governor and Company of the Bank of Ireland

Creditor

Revenue Commissioners

Creditor

Procedural Posture

Company Law Application / Supplementary High Court Judgment Following Initial Judgment and Prior to Supreme Court Appeal

Legal Issues

  1. 1 Whether service of a notice pursuant to clause 10 of the Debenture converts a floating charge into a fixed charge over company assets
  2. 2 Proper construction of the Debenture regarding post-notice rights and obligations

Ratio Decidendi

On proper construction of the Debenture, service of a notice under clause 10 does not restrict the company's ability to deal with assets subject to the floating charge; therefore, the notice does not convert the floating charge into a fixed charge.

Court Disposition

Application refused; declaration that service of notice under clause 10 does not convert floating charge into fixed charge.